When do we apply for a new CC???

Give it at least a year before another CC application. The "risk/reward" ration for approval of a new CC app is negative. The odds are you'll hurt your husband's credit more by trying to apply now.

The good news: since he has a Cap1 CC, if he maintains a good payment history, Cap1 will probably send him an offer for another card (probably after 6 months of good payment history).

Thanks for reminding me, I should have added this feature to my "primer"-do NOT apply for more credit! Build on what you have first, let the credit come to you.

 

Try Orchard Bank and/or Household Bank. They are the easiest to get if you have bad credit/no credit, or recently filed bankruptcy. Three months after my October 2004 bankruptcy discharge Orchard approved me for a $300 limit, but $39 annual fee Mastercard. 6 months later, still in 2005, they sent me, without me actually applying for it, one of their Visas with a limit of $300/$39 annual fee. By now, 2007 - they raised my limits to $1000 each.
Household is the same way but not as "generous" in increasing limits. My wife's Household MC and Household Visa - received at the same time as my Orchards - same start up limits/annual fees have by now only increased to $700 and $500 limits.

 

I tend to agree with Biz here. I'd say he's erring on the side of caution whereas I would suggest the following:

1) At a 650, presuming this is a FICO score, you're in the market fow Juniper Bank, Union Plus, Merrick, and probably some low level AMEX and Citibank products. I may pull the trigger on a Delta Sky Points or a Premier Pass. If that was denied, I'd opt for the Union Plus or U.S. Airways/Carnival Sea Miles.

Now, bear in mind that no new account is going to help too much or at all until it reaches six months of age. However, it may help offset some of the delinquent debt from the two collections.

2) I would certainly dispute the collections. Presuming you could delete them, a file with two accounts between one and two years of age generally produces a score of 710. Hard to believe but, its true.

 

Yes, I am advising caution on this one, due to only three months of payment history with the Cap1 CC, it may look like a "credit hungry" picture here.

And...here's your "second referral", this is another case where purchasing an AU account might be the best (immediate) answer.

No laughing this time apex....

 

Well, I didn't want to say it but . . .

In all honesty though, yes, these folks could greatly improve their situation by adding some positive, aged account tradelines. If they would do that, then the whole issue with new accounts becomes moot and moreover, they would have the scores necessary to obtain "real" credit products.

 

AU accounts

Hi all,
I've never quite understood this concept. Are you talking about getting on a parent or friend's aged account?
Do you also use the credit for purchasing or are you basically getting the aged account advantages?

 

Yes, you can have a relative or friend add you so long as the account is of sufficient age and has not been late within the last two years. In addition, the account should not be above 33% utilization.

You are paying for the score increase when you elect to proceed with this service through a corporation. You do not receive a card and cannot use the account to which you are added. Therefore, in essence, you are paying for the purpose of simply bettering your own credit worthiness.

 

You are added as a user to another persons account. Thereafter, that creditor reports the information to your credit report. It is that simple. Typically, there is a "designation" which reports as authorized user, account user or undesignated. This has no impact on how it affects your credit scores.

The crux of how this works is that you get the positive affects from the length of time the account has been open, its corresponding payment history, and the addition of availiable credit it adds to your profile.

Applying for credit on your own does not provide any of the above with the exception of adding more availiable credit. In fact, the general rule is that until an account reaches six months of age it does not help at all. It usually lowers the scores for the first few months to a marginal extent because it is brand new.

 

I'm probably going about this at a snail's pace but....

Point taken about the age of the new cc account. I might be doing things the s-l-o-w way...
I have MyFico score watch, it even sends me text message when there's a change to my score - so we shall see.
I did apply today for a secured CC $300 limit - with Wells Fargo.
My Cap1 cc [after a payment today] will have a balance of $600. The limit is $1300, and I plan to get that down to 33% utilization [$429?] and lower by December 1.
Apex, after the new year when I have a bit more disposable[?] income to work with, I'd like to get in touch with you. This AU idea is intriguing.

 

Intriguing and effective . . .

We'll be here whenever you decide to proceed.

 

Just be aware that applying for the new secured card will most likely pull your score down. And, what use is a $300 CC, really?

If your main goal is the credit score increase, then I would have used the $300 (plus fees) towards an AU account purchase. Again, I usually don't recommend that, but in your case, it makes the most sense.

I don't mean to be hard on you, but I don't like to see people make rash choices.

 

You're not being hard on me.

No offense taken. Thank you for your input.
How about this? If I get turned down I will contact Apex. If I get approved then I will still contact Apex.
I am hesitant because I have had some hard lessons in the past and not sure who to believe. Got involved with a really slimy mortgage broker and it was quite the learning experience.
Have researched a bit more on the AU's and becoming more comfortable with the idea though. I wrote Apex privately about the prices, and I thank him for his response. I might send Apex pdfs of my latest credit reports, but I am going to get new ones soon. The reason follows...
I recently was working with a law firm for "credit repair" and have stopped retaining them as of 10/18/07. They just sent out a new batch of dispute letters and it is my hope to get copies of those letters. Hopefully the latest investigation results will come back soon. I am sure you can understand my position and my hesitancy. I am thinking that I might have messed myself up by retaining this firm.

Finally, applying for a small CC with my bank might not have been the best choice, and on the one hand - yes it will bring my score down temporarily. OTOH I am also building another relationship with my bank by using another of their products.

I wish I'd found this forum a little sooner, but I did not. Credit repair is complex. [understatement I know]
Biz - Thank you again for your comments.

 

Thanks, my style often is to be direct, perhaps in the "tough love" style. I never mean to be "harsh" to anyone.

Don't be too hard on yourself either, you're on the right track now, and realize that you do have the time to do this properly.

Feel free to post any, and all, questions. We're here to help, and the beauty of this forum is that it's free....hence the information is objective. Always take any, and all, advice in the proper view.

Apex is an exception to the credit repair firms, most cannot deliver their promoted promises, and we have seen many "casualties" from them here on the forum. I as a rule do not recommned use of a repair firm, but I can understand why a consumer would use one. If that is your choice, then Apexcrsrv is the first I would recommend.

You situation is not as bad as you may think, a bit of work and you will see nice results. Just follow the process, and post any questions.

Good Luck

 

This article may help...

Some good reading as a primer to applying for new credit:

http://www.bankrate.com/nltrack/news/DrDon/20071019_cards_credit_rating_a1.asp

 

Pie Chart!

Thanks Biz for the link. I especially like the pie chart on this one. Blue for payment history (35%) and pink for amounts owed (30%).
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